New Delhi [India], Feb 15 (ANI): The Reserve Bank of India (RBI) on Wednesday announced the cancellation of license and conversion of the Sojitra Co-operative Bank Ltd., Dist. Anand (Gujarat) under Banking Regulation Act, 1949 (AACS) for unsatisfactory financials and compliance record.
In a statement, the RBI said, "It is hereby notified for information of the public that the Reserve Bank of India has cancelled the license of The Sojitra Co-operative Bank Ltd., Dist. Anand (Gujarat) vide order dated January 23, 2017."
It is noted that the bank was advised to go out of purview of the Banking Regulation Act, 1949 (AACS) and convert into a Co-operative Society owing to its unsatisfactory financials and compliance record.
Further it has fulfilled all the conditions stipulated in Section 36(A)(2) of the Act ibid to allow for its conversion into The Sojitra Co-operative Society Ltd.
Accordingly, the bank has ceased to be a "Co-operative bank" as defined in Section 5 (cci) of the Banking Regulation Act, 1949 read with Section 56 of the Act and all the provisions of the said Act applicable to the said co-operative bank shall cease to apply to it.
The bank has been prohibited from carrying on banking business in India under Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies).
Also, the bank is precluded from transacting the business of "Banking" as defined in Section 5(b) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) including acceptance / repayment of deposits. (ANI)